S 3 C - exemption clauses

S 3 C - exemption clauses - Exemption Clauses In contract,...

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Exemption Clauses In contract, a party often runs a significant risk of harm to the other party through some failure in the course of performing the contract. To protect against potential liability there are three options: 1 Party may obtain insurance against the risk and raise its prices 2 It may be a “self-insurer” and charge a higher fee to build up a contingency fee 3 May insist upon exemption clauses excluding itself from any liability for the risk and transferring the risk of harm to its customer Exemption Clause – a clause in a contract that exempts a party from liability for failing to perform some or all of its contractual obligations Exemption Clauses Subject to: 1 Requirement of Adequate Notice a. Accepting party must be adequately notified of terms of contract to be valid. Such as ticket, receipt, visible signs at time of acceptance. i. If term is unexpected and unfair, it is not binding. ii. If contracted accepted, lacking unexpected and unfair terms, and party should have reasonably known the terms, all terms are binding on the accepting party. iii.
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This note was uploaded on 12/10/2011 for the course COMM 393 taught by Professor Elaine during the Spring '10 term at UBC.

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S 3 C - exemption clauses - Exemption Clauses In contract,...

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